Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Swiss group Lonza to buy Arch Chemicals

Share this article

10:12 CEST+02:00

Swiss biochemicals group Lonza said Monday it is offering to pay $1.4 billion to acquire US group Arch Chemicals, a move which it said would strengthen its position in the market of microbe control.

Lonza is offering $47.20 for each Arch Chemicals share, a premium of 36.7 percent over the US firm's average closing price over the last 30 trading days.

"This transaction represents an excellent strategic and cultural fit. Lonza and Arch Chemicals offer highly complementary products and technologies and together will be the global leader in controlling unwanted microbes," said Stefan Borgas, chief executive of Lonza.

"The business will enjoy a strong platform for accelerated future growth for the benefit of all our stakeholders," he added.

While the merger will require integration costs of $85 million over the next two years, Lonza is aiming to save $50 million a year by the second year of its merger with Arch Chemicals.

It also targets sales growth of $40 million by the third year.

Connecticut-based Arch Chemicals employs 3,000 people and posts annual sales of over $1 billion.

Get notified about breaking news on The Local

Share this article

From our sponsors

Change the world with a master’s degree from Sweden’s Linköping University

Master’s students at world-leading Linköping University (LiU) aren’t there simply to study. They solve real-world problems alongside experts in fields that can create a better tomorrow. Do you have what it takes to join them?

Advertisement